1 Overview

21

1.1 Introduction

21

1.1.1 Approach

22

1.1.2 Versioning

22

1.1.3 Learning Outcomes

23

1.2 Brief History of SAP

23

1.3 Different Types of Projects

24

1.3.1 Fresh Implementation Projects

24

1.3.2 Upgrade Projects

25

1.3.3 Request-Based Support Projects

25

1.3.4 Production-Support Projects

26

1.3.5 Rollout Projects

26

1.4 Points to Consider for a Successful SAP Implementation

27

1.4.1 The Project Team

28

1.4.2 SAP Implementation: More Than an IT Project

28

1.4.3 The Right Resources

28

1.4.4 The Gap Analysis

29

1.4.5 Project Testing

29

1.4.6 Cutover Plans

30

1.4.7 User Training

30

1.4.8 The Change Management Program

30

1.5 SAP Navigation Basics

30

1.5.1 Logging on to the SAP System

31

1.5.2 Screen Structure in the SAP System

32

1.5.3 Creating Your Favorites List

34

1.5.4 Calling Functions in SAP System

34

1.5.5 Accessing the Customization Area

35

1.6 Summary

36

2 SAP Enterprise Structure

37

2.1 Building an Enterprise Structure

38

2.2 Building a Project’s Straw Man

39

2.2.1 Company Code

40

2.2.2 Cost Center

41

2.2.3 Profit Center

41

2.2.4 Chart of Accounts

42

2.2.5 Controlling Area

42

2.2.6 Business Area

42

2.2.7 Chart of Depreciation

43

2.3 Designing the Straw Man

43

2.4 Configuring the Enterprise Structure

44

2.4.1 Countries

44

2.4.2 Currencies

51

2.4.3 Define Company

59

2.4.4 Define Fiscal Year Variant

60

2.4.5 Define Posting Period Variant

62

2.4.6 Define Chart of Accounts

64

2.4.7 Structure of the Chart of Accounts

66

2.4.8 Define Credit Control Area

67

2.4.9 Define Company Code

69

2.4.10 Assign Company Code to a Fiscal Year Variant

71

2.4.11 Define Controlling Area

72

2.4.12 Define Cost Center Group

75

2.4.13 Activate Controlling Area Submodules

76

2.4.14 Functional Area

78

2.4.15 Operating Concern

79

2.4.16 Create a Default Profit Center

80

2.4.17 Check Company Code Global Parameters

82

2.5 Summary

84

3 Global Settings for Financial Accounting in SAP ERP Financials

85

3.1 What Is a Document in SAP ERP?

86

3.1.1 Document Header

86

3.1.2 Line Items

88

3.1.3 Master Data

88

3.2 Configuration of Global Settings

89

3.2.1 Define the Retained Earnings Account

89

3.2.2 Field Status Groups

91

3.2.3 GL Account Groups

98

3.2.4 Document Types

105

3.2.5 Document Number Ranges

111

3.2.6 Purpose of Subledger Reconciliation Accounts

114

3.2.7 Document Posting Keys

115

3.2.8 Updating Layout for the Document Entry Screen

118

3.2.9 GL Document Display and Layouts (Default Settings)

119

3.2.10 Document Change Rules

121

3.2.11 Cross-Company Code Settings

123

3.2.12 Employee Tolerances

124

3.2.13 Change Message Control for Posting to GL Accounts

126

3.2.14 Financial Statement Versions

128

3.3 Sales and Purchase Tax

131

3.3.1 Basic Settings

134

3.3.2 Posting

138

3.3.3 Changing Tax Laws in the United Kingdom and Europe

142

3.4 Summary

143

4 New General Ledger

145

4.1 Overview of the GL

146

4.1.1 The New GL

146

4.1.2 New Functionality

148

4.1.3 New Tables

149

4.1.4 Document Splitting

149

4.1.5 Parallel Accounting

151

4.1.6 Ongoing Use of Classic GL

151

4.2 Building Your New GL Blueprint

152

4.2.1 New GL or Classic GL?

152

4.2.2 What Object to Split

152

4.2.3 Which Account Assignment Objects to Incorporate into Your Model

152

4.2.4 How Document Splitting Fits in with Other Add-Ons

153

4.3 Configuration Steps to Activate the New GL

153

4.3.1 Activation of New GL Accounting

154

4.3.2 Define Ledgers for GL Accounting

154

4.3.3 Segment

160

4.3.4 Integrating the GL with Subcomponents

164

4.3.5 Document Splitting

174

4.3.6 Parallel Accounting

186

4.3.7 Setting Up Additional Ledgers

188

4.3.8 CO Transfer Postings

190

4.3.9 Planning in the New GL

190

4.3.10 Integration with Asset Accounting

191

4.4 IFRS Compliance

192

4.4.1 IFRS 5—Noncurrent Assets Held for Sale or Discontinued Operations

192

4.4.2 IFRS 8—Operating Segments

193

4.4.3 IAS 7—Cash Flow Statements

193

4.4.4 IAS 10—Events after the Balance Sheet Date

193

4.4.5 IAS 16—Property, Plant, and Equipment

194

4.4.6 IAS 19—Employee Benefits

194

4.4.7 IAS 36—Impairment of Assets

194

4.5 Summary

195

5 Accounts Payable

197

5.1 Overview of the P2P cycle

198

5.1.1 Purchase Order

199

5.1.2 Goods Receipt

199

5.1.3 Invoice Verification

200

5.1.4 AP Invoice

200

5.1.5 Outgoing Payment

201

5.2 Building an AP Business Model

201

5.2.1 Design of Vendor Master Records

201

5.2.2 Invoice Processing Control

202

5.2.3 The Payment Process

202

5.3 Master Data

202

5.3.1 Vendor Master Records

203

5.4 Vendor Account Groups

205

5.4.1 General Data View

208

5.4.2 Company Code View

210

5.4.3 Purchasing Data View

211

5.4.4 Vendor Account Group Variations

212

5.5 Vendor Number Ranges

213

5.5.1 Business Decisions

214

5.5.2 Create Vendor Number Ranges

215

5.5.3 Transporting Number Ranges

216

5.5.4 Assign a Number Range to an Account Group

216

5.5.5 Extending Vendors to Additional Company Codes

217

5.6 Accounting Clerks

219

5.7 Define Sensitive Fields for Dual Control

220

5.8 House Banks

222

5.8.1 Configuring the House Bank

223

5.8.2 Bank Master Records

225

5.8.3 Define Number Ranges for Checks

227

5.9 Invoice Processing

228

5.9.1 Nonstock Invoices

228

5.9.2 Invoice Verification (Processing Stock Invoices)

229

5.9.3 Duplication Invoice Check

230

5.10 Document Parking

231

5.11 Configuring Special General Ledger Indicators for AR/AP Down Payment Postings

233

5.12 Posting and Clearing Down Payments

235

5.12.1 Posting Down Payments

235

5.12.2 Clearing Down Payments

238

5.13 Outgoing Payments Processing

239

5.13.1 Processing a Manual (Outgoing) Payment

239

5.13.2 Vendor Tolerances

241

5.13.3 Automatic Posting of Payment Differences

242

5.13.4 Cross-Company Code Manual Payments

244

5.13.5 Payment Block Reasons

244

5.13.6 Automatic Payment Program

248

5.13.7 Running the Automatic Payment Program

254

5.14 Cash Journal

257

5.14.1 Configuring Cash Journals

257

5.14.2 Cash Journal Postings

264

5.15 Electronic Bank Statements

266

5.15.1 Configuring Electronic Bank Statements

267

5.15.2 Importing Electronic Bank Statements into SAP

276

5.16 Summary

279

6 Accounts Receivable

281

6.1 Overview of the Order-to-Cash Process

281

6.1.1 Sales Order

282

6.1.2 Delivery Note

283

6.1.3 Billing Document

283

6.1.4 AR Invoice

283

6.2 Building an Accounts Receivable Business Model

284

6.3 Master Data

285

6.4 Customer Master Records

285

6.4.1 The Nature of the Customer Database

286

6.4.2 Manual or Automatic Creation of Customer Master Records

287

6.4.3 Searching for Existing Customers (Matchcodes)

288

6.4.4 Define Account Groups

290

6.4.5 Company Code or Activity Account Groups

296

6.4.6 Extending Your Customers to Additional Company Codes

298

6.4.7 Customer Number Ranges

299

6.4.8 Accounting Clerks

302

6.5 Finance Documents Global Settings

303

6.5.1 Document Types and Number Ranges

303

6.5.2 Document Posting Keys

303

6.5.3 Payment Terms

303

6.6 Customer Invoice Processing

304

6.7 Configuring Special General Ledger Indicators for AR/AP Down Payment Postings

305

6.7.1 Posting and Clearing Down Payments

308

6.8 Customer Payments

311

6.8.1 Defining Customer Tolerances

313

6.8.2 Write-off Amounts within Tolerance

316

6.8.3 Reason Codes

317

6.9 Debtor Management

319

6.9.1 Credit Limit Business Process

320

6.9.2 Automatic Credit Control

325

6.9.3 Dunning

328

6.9.4 Configuring Interest Calculations

335

6.9.5 Calculating Interest

345

6.9.6 Head Office Functionality

347

6.10 Summary

347

7 Asset Accounting

349

7.1 Overview of Asset Accounting

350

7.1.1 Implementation Considerations

350

7.1.2 Integration

351

7.2 Building Blocks of Asset Accounting

351

7.2.1 Chart of Depreciation

352

7.2.2 Asset Assignment to Organizational Units

353

7.2.3 Integration with the GL

354

7.2.4 Structuring Your Fixed Assets Design

355

7.3 Building an Asset Accounting Business Model

355

7.4 Asset Accounting Configuration

357

7.4.1 Copy Reference Chart of Depreciation

357

7.4.2 Assign Chart of Depreciation to a Company Code

359

7.4.3 Specify a Number Assignment across Company Codes

360

7.4.4 Specify Account Determination

361

7.4.5 Create Screen Layout Rules

362

7.4.6 Define Asset Number Range Intervals

364

7.4.7 Define Asset Classes

365

7.4.8 Define Depreciation Areas

366

7.4.9 Specify Transfer of Acquisition and Production Costs Values

368

7.4.10 Specify Transfer of Depreciation Terms

369

7.4.11 Determine Depreciation Areas in the Asset Classes

370

7.4.12 Deactivate Asset Classes for Chart of Depreciation

371

7.4.13 Define how Depreciation Areas Post to the GL

372

7.4.14 Maintain Depreciation Key

373

7.4.15 Define Base Method

374

7.4.16 Define Declining Balance Method

377

7.4.17 Define Multilevel Methods

377

7.4.18 Maintain Period Control Methods

379

7.4.19 Activate Account Assignment Objects

380

7.4.20 Specify Account Assignment Types for Account Assignment Objects

382

7.4.21 Assign GL Accounts

383

7.4.22 Parallel Ledgers in SAP New General Ledger and Integration with Asset Accounting

386

7.4.23 Specify the Document Type for Posting Depreciation

389

7.4.24 Transaction Types

391

7.4.25 Configuring the Asset History Sheet

396

7.4.26 Defining Validations for Asset Master Data

399

7.4.27 Substitutions for Asset Master Data

402

7.5 Asset Transaction Processing

404

7.5.1 Create a New Asset Master Record

404

7.5.2 Post Values to an Asset Using External Acquisition

408

7.5.3 Working with Asset Explorer

411

7.5.4 Post Transfers to Other Assets

415

7.5.5 Post Retirements with Scrapping

418

7.5.6 Post Depreciation Run

420

7.6 Current Asset Valuation

422

7.6.1 Inventory Valuation

422

7.6.2 Accounts Receivables Valuation

425

7.7 Summary

429

8 Controlling in SAP ERP Financials

431

8.1 Overview and Diagram

432

8.2 Subcomponents of the Controlling Component

433

8.2.1 Cost Element Accounting

433

8.2.2 Cost Center Accounting

433

8.2.3 Internal Orders

433

8.2.4 Profit Center Accounting

434

8.3 Building a Controlling Model

434

8.3.1 Concept of Real and Statistical Postings

436

8.4 Configuration Settings in Controlling

437

8.4.1 Basic Controlling Area Settings

437

8.4.2 Cost Element Accounting

443

8.4.3 Cost Center Accounting (CCA)

449

8.4.4 Internal Order Accounting Configuration

456

8.4.5 Profit Center Accounting Configuration

463

8.5 Concepts of Periodic Reposting, Distribution, and Assessment

469

8.5.1 Periodic Reposting

470

8.5.2 Distribution

471

8.5.3 Assessment

473

8.6 Real-Time Integration of Controlling with Financial Accounting

476

8.6.1 Configuration Settings

477

8.7 Cost Center Planning

480

8.7.1 Versions in Controlling

480

8.7.2 Planning Layouts and Planner Profiles

480

8.8 Summary

485

9 SAP ERP Financials Integration

487

9.1 Automatic Account Determination

490

9.1.1 Inventory Movement Account Determination

491

9.1.2 Billing: Revenue Account Determination

501

9.1.3 Payment Processing Account Determination

508

9.2 Master Data

510

9.2.1 Account Assignment Objects

511

9.2.2 Document Types and Number Ranges

513

9.2.3 Payment Terms

514

9.2.4 Journal Entry Screen Layouts

518

9.3 Integrating SAP Payroll with SAP ERP Financials

519

9.3.1 Employee Master Records

520

9.3.2 Payroll Process

523

9.3.3 Wage Types

524

9.3.4 Symbolic Accounts

525

9.3.5 Automatic Account Determination

526

9.3.6 Finance Posting Variant

530

9.4 Interfaces

531

9.4.1 Purpose of the Interface

532

9.4.2 Interface Design

533

9.4.3 Interface Testing

536

9.5 The Value of Integration Testing

536

9.6 Summary

537

10 Data Migration

539

10.1 Key Principles of Data Migration

540

10.2 The Six-Step Migration Model

541

10.2.1 Source/Data Cleansing

542

10.2.2 Field Mapping

543

10.2.3 Define Programs

543

10.2.4 Records Mapping

544

10.2.5 Trial Loads

545

10.2.6 Cutover

545

10.3 Inventory Transfer

546

10.4 Open Items Transfer

547

10.5 Upgrade to SAP ERP 6.0

547

10.6 Asset Accounting Legacy Data Transfer

549

10.6.1 Define Asset Transfer Date

549

10.6.2 Create Legacy Assets

551

10.6.3 Transfer Balances

554

10.7 Create Your Own LSMWs to Assist in Data Migration

555

10.7.1 Benefits of LSMW

555

10.7.2 Define the LSMW Name

557

10.7.3 Maintain Object Attributes

558

10.7.4 Maintain Source Structure

561

10.7.5 Maintain Source Fields

561

10.7.6 Maintain Structure Relations

563

10.7.7 Maintain Field Mapping and Conversion Rules

563

10.7.8 Maintain Fixed Values, Translations, and User-Defined Routines

564

10.7.9 Specify Files

564

10.7.10 Assign Files

566

10.7.11 Create Load File

566

10.7.12 Upload Load File Data

567

10.7.13 Create Batch Input Session

569

10.7.14 Run Batch Session

570

10.7.15 Cross Application of LSMW

572

10.8 Summary

572

11 Period-End Closing

573

11.1 Fast Close with the New GL

574

11.2 Key Elements of a Period-End Timetable

575

11.3 Dependent Activities Already Completed

575

11.4 Analysis of Period-End Activities

575

11.5 Foreign Currency Valuation

582

11.5.1 Configuring Foreign Currency Valuations

582

11.5.2 Foreign Currency Valuation Processing

587

11.6 Classic GL versus the New GL

595

11.7 Summary

596

12 SAP ERP Financials Reporting

597

12.1 Building Your Reporting Suite

597

12.2 Reporting Tools

599

12.3 Common Reporting Requirements

600

12.3.1 Accounts Payable (AP)

602

12.3.2 Accounts Receivable (AR)

604

12.3.3 Asset Accounting (AA)

605

12.3.4 General Ledger

606

12.4 Creating Basic Management Accounting Reports with Report Painter

607

12.4.1 Decide on the Report Type

608

12.4.2 Define a Row

611

12.4.3 Define a Column

613

12.4.4 Define Formula Rows and Columns

615

12.4.5 Define your General Data Selection

616

12.4.6 Report Layout

618

12.4.7 Other Report Layout Formatting

621

12.4.8 Assign Report Group

624

12.4.9 Change Report Group

625

12.5 International Financial Reporting Standards (IFRS)

627

12.6 Parallel Accounting Approaches

628

12.6.1 Accounts Approach

629

12.6.2 Special Ledgers Approach

629

12.6.3 Multiple Ledger Approach in the New GL

630

12.7 Summary

631

13 Implementing and Supporting SAP ERP Financials

633

13.1 Implementing SAP

633

13.1.1 Preparation

634

13.1.2 Design Phase

636

13.1.3 Build

641

13.1.4 Final Preparation

645

13.2 Supporting Your SAP ERP Solution

646

13.2.1 Go-Live Support (Stabilization)

646

13.2.2 Long-Term Support

647

13.3 Summary

650